Question No 21 Chapter No 16
Recertification after the Preparation of Trail Balance but before Final Account
Single Account Errors
21. The trial balance of Royal Enterprises did not agree on 31-3-2018. the different was put into the suspense account. Subsequently, the following errors were discovered you are required to rectify the errors
- Interest received Rs 670 was wrongly credited to commission account Ts 607
- A sum of Rs 880 paid to M.S. Gill as credited to P.S. Gill Rs 808
- A sale of Rs 6,000 paid to Partap Singh was recorded in the purchases book with Rs 16,000however, Partap Singh was correctly debited
- Goods of Rs 1,400 distributed as free samples debited to drawings account Rs 1,040
- Plant purchases for Rs 3,800 and installation expenses incurred Rs 200 were debited to purchased account Rs 3,800
- Discount allowed by Gautam RS 250 entered twice in cash book once in the discount column RS 150 and second time in cash column Rs 250
The solution of Question No 21 Chapter No 16:-
| Journal | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| (a) | Commission A/c | Dr. | 607 | ||
| Suspense A/c | Dr. | 63 | |||
| To Interest A/c | 670 | ||||
| (Being interest received Rs 670 wrongly credited to commission as Rs 607 now corded.) | |||||
| (b) | M.S Gill A/c | Dr. | 880 | ||
| P.S. Gill A/c | Dr. | 808 | |||
| To Suspense A/c | 1,688 | ||||
| (Being amount paid to M.S Gill wrongly credited to P.S gill now corded.) | |||||
| (c) | Suspense A/c | Dr. | 22,000 | ||
| To Sale A/c | 6,000 | ||||
| To Purchases A/c | 16,000 | ||||
| (Being sale of Rs 6,000 wrongly traded as the purchase of Rs 16,000now corrected ) | |||||
| (d) | Advertisement A/c | Dr. | 1,400 | ||
| To Drawings A/c | 1,040 | ||||
| To Suspense A/c | 360 | ||||
| (Being free samples, wrongly debited to drawings account now corrected ) | |||||
| (e) | Plant A/c | Dr. | 4,000 | ||
| To Purchases A/c | 3,800 | ||||
| To Suspense A/c | 200 | ||||
| (Being plant purchased recorded in purchases A/c now corrected ) | |||||
| (f) | Gautam A/c | Dr. | 650 | ||
| To Discount allowed A/c | 150 | ||||
| To Discount received A/c | 250 | ||||
| To Cash A/c | 250 | ||||
| (Being discount received wrongly recorded in discount and cash now corrected ) | |||||
Error Rectification in accounting – Explanation with examples
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Chapter No. 2 – Theory Base of Accounting
Chapter No. 3 – Vouchers and transactions
Chapter No. 4 – Journal
Chapter No. 5 – Ledger
Chapter No. 6 – Cash Book
Chapter No. 7 – Other Subsidiary Books
Chapter No. 8 – Journal Proper
Chapter No. 9 – Trial Balance
Chapter No. 10 – Bank Reconciliation Statement
Chapter No. 11 – Depreciation
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Chapter No. 12 – Provisions and Reserves
Chapter No. 13 – Bills of Exchange
Chapter No. 14 – Rectification of Errors
Chapter No. 15 – Financial Statements – (Without Adjustments)
Chapter No. 16 – Financial Statements – (With Adjustments)